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New Downpayment Assistance Program Supports Homeownership

Paul Davis announces downpayment help for first-time homebuyers

Paul Davis announced the Downpayment Assistance Plan (DAP) (CBC)

New Downpayment Assistance Program Supports Homeownership

The Honourable Paul Davis, Premier of Newfoundland and Labrador, today announced a $2.5 million investment for a new Downpayment Assistance Program (DAP) for first-time homebuyers. The two-year pilot program, administered by Newfoundland and Labrador Housing Corporation (NLHC), provides first-time homebuyers with low-to-moderate incomes the opportunity to qualify for downpayment loan assistance to purchase a home.

“The Downpayment Assistance Program can help make the dream of homeownership a reality for more individuals and families throughout the province. Affordable homeownership is an investment in our future, and enables us to encourage and support those who choose Newfoundland and Labrador as their home and want to live, work and raise their families here."- The Honourable Paul Davis, Premier of Newfoundland and Labrador

Applicants must have a total household income of $65,000 or less, and be able to obtain a pre-approved mortgage from an accredited lender. Based on a sliding scale of household income and regional residential real estate costs, an applicant may be eligible for a downpayment loan ranging from $4,000 to $12,500.

“Saving the downpayment for a home is often one of the greatest challenges for potential first-time homebuyers. Our government, under the Premier’s leadership, has created this Downpayment Assistance Program as a way to open the door to homeownership for families and individuals who never thought it would be a possibility.”- The Honourable Clyde Jackman, Minister Responsible for Newfoundland and Labrador Housing Corporation

The program will provide eligible households a repayable loan of up to five per cent of the purchase price of a new or existing home, to a maximum purchase price of $250,000 in St. John’s (Census Metro Area) and Labrador; $200,000 in regional centres (Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville) and all communities within a 30-kilometre radius; and $175,000 in the remainder of the province. Further details are available in backgrounder below.

“Newfoundland and Labrador Housing Corporation is pleased to play an integral role in the development and management of a program which can help people enter into homeownership. Our Corporation will ensure the program is made available to all regions of our province.”- John Ottenheimer, Chief Executive Officer, Newfoundland and Labrador Housing Corporation,

Recognizing that community collaboration is vital for a successful program, Newfoundland and Labrador Housing Corporation has worked closely to establish partnerships with municipalities, the real estate industry, the legal community, financial institutions, as well as the private and non-profit sectors, to further improve housing affordability through this initiative.

“We are pleased that the Provincial Government recognizes the importance of homeownership as a key piece of building financial independence for Newfoundlanders and Labradorians, and we are excited about the new Downpayment Assistance Program. Purchasing a home is a solid investment, and this program will certainly help people who are struggling to reach their dreams of homeownership.”- Bill Stirling, Chief Executive Officer, Newfoundland and Labrador Association of Realtors

Successful applicants will have five years after the purchase of a home before loan repayment begins. The pilot program can assist approximately 100-125 applicants annually. DAP applications are available at all Newfoundland and Labrador Housing Corporation regional offices and on NLHC’s website. For more information, visit:http://www.nlhc.nl.ca/programs/programsDap.html

QUICK FACTS

The Honourable Paul Davis, Premier of Newfoundland and Labrador, today announced a $2.5 million investment for a new Downpayment Assistance Program (DAP) for first-time homebuyers.

The two-year pilot program, administered by Newfoundland and Labrador Housing Corporation, provides first-time homebuyers with low-to-moderate incomes the opportunity to qualify for downpayment loan assistance to purchase a home.

The DAP will provide qualifying first-time homebuyers downpayment assistance loans between approximately $4,000 and $12,500 towards the purchase of a house.

Applicants must have a total household income of $65,000 or less, and obtain a pre-approved mortgage from an accredited lender.

The province-wide program will assist approximately 100-125 applicants annually.

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The Honourable Paul Davis, Premier of Newfoundland and Labrador announced a Downpayment Assistance Program to help individuals and families achieve homeownership - October 22, 2015.

Backgrounder
Sliding Scale of Assistance

Income Level

St. John's and Labrador

Regional Centres

Rural Newfoundland

Maximum Loan Amount*

Maximum Loan Amount

Maximum Loan Amount

<$65,000

$12,500

$10,000

$8,750

$66,000

$12,000

$9,500

$8,250

$67,000

$11,500

$9,000

$7,750

$68,000

$11,000

$8,500

$7,250

$69,000

$10,500

$8,000

$6,750

$70,000

$10,000

$7,500

$6,250

$71,000

$9,500

$7,000

$5,750

$72,000

$9,000

$6,500

$5,250

$73,000

$8,500

$6,000

$4,750

$74,000

$8,000

$5,500

$4,250

$75,000

$7,500

$5,000

$3,750

* maximum loan amounts are based on the maximum 5% loan available, subject to maximum purchase prices ($250,000 in St. John's (Census Metropolitan area) and Labrador; $200,000 in the five regional centres of Clarenville, Gander, Grand Falls-Windsor, Corner Brook and Stephenville and all communities within a 30-kilometre radius, and $175,000 in the rest of Newfoundland and Labrador.

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